Wal-Mart is bidding against Carrefour, Finnish retailing giant Kesko, and Croatia's Agrokor Group, to buy Lenta, a privately held Russia-based chain of hypermarkets, in a deal that could cost around US$2 billion (€1.3 billion).

Lenta has 31 hypermarketts, with 14 located in St. Petersburg and the rest in other major Russian cities. The company's revenues after value-added taxes were US$1.5 billion in 2007. Lenta is valued at around US$2 billion, including US$500 million in debt.

The companies vying for control have one month to inspect Lenta's books and make final offers. The owners want to sell an 89% stake in the company that includes all shareholders' shares except for the 11% held by the European Bank for Reconstruction and Development (EBRD).

Mike Duke, Wal-Mart's head of international operations, said in June that the company was exploring opportunities in Russia. While neither Wal-Mart nor Carrefour have retail operations in Russia, both have representative offices there.

Related articles:
Property developer to back Wal-Mart’s market entry in Russia
Tesco makes plans for Russia
Russia: tough territory for foreign retailers